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Sending Money
Consumers in the United States send billions of dollars to friends, family and businesses domestically and in other countries. Generally, there are fees and other costs associated with these services. Below you learn about the difference between these two types of wire transfers and your consumer rights.
Domestic Wires
A domestic wire transfer is a type of electronic transfer that sends money from one location within a specific country to a different location in that same country. This is in contrast to an international wire transfer in which money is moved between two points that are located in different countries. Domestic wire transfers are typically simple to use and make it possible for the funds to be available to the recipient almost immediately.
Remittances (International Wire Transfers)
Remittance transfers are also known as “international wires” or “international money transfers.” Below you will find detailed information about remittances so you can start sending money abroad with confidence.
Remittance Disclosures and Other Protections
The disclosures must contain:
- The amount of money to be transferred;
- The exchange rate that will be used when converting the money to the foreign currency;
- Fees and taxes associated with the transaction;
- The amount of money expected to be received abroad, not including certain fees charged to the recipient or foreign taxes; and
- If applicable, a statement that additional fees and foreign taxes may apply.
Companies must also provide a receipt that repeats the information in the first disclosure or a proof of payment. The receipt must also tell a consumer additional information, including the date when the money will arrive and how the consumer can report a problem with a transfer.
Cancellations: Consumers may cancel a transfer and receive a full refund, generally as long as the request is made within 30 minutes of completing the transaction request. To cancel a transfer the service provider must be able to identify the sender and the transaction information. The funds must not have been picked up by the designated recipient or deposited into that person’s account.
Transfer Errors: Companies must investigate when a consumer reports a problem with a transfer. For certain errors, consumers can receive a refund or resend the transfer free of charge if the money did not arrive as promised. It’s generally best to report a problem to the provider as soon as possible; however you will have up to 180 days to do so.
Know Your Rights
As with any product or service, there are fees, taxes, and other costs associated with conducting the transaction. Many states have consumer protection laws in place to help monitor and ensure proper disclosure of these costs. However, international money transfers have fallen largely outside the scope of federal consumer protection laws. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act expanded the Electronic Funds Transfer Act to establish minimum federal consumer protections for remittances.